IT Industry

Analysis
Pre se n te d b y
S o m p a lD u h a n
D e e p a C h a n d ra se ka r

Pro f . A m a n C h u g h
World's largest
software companies 
• A Top 10 extract of the world's largest
software companies according to the 
Forbes Global 2000 is provided below

S o u rce : w w w . w ikip e d ia . co m
w w w . fo rb e s. co m
Im a g e S o u rce : re sp e ctive C o m p a n y
Computers - Software –
Large Cap (12)

Image Source : respective Company Websites

Industry Financials –
Computers - Software
Large Cap (in Cr.)
•
• Equity - ` 1833.24 Cr.
• Sales - ` 100654.21 Cr.
• NP - ` 24267.7 Cr.
• M.Cap - ` 525559.66 Cr.
• P/E - 21.66
•
•
Size of the Industry

S o u rce :
N a ssco m
Sector Wise Contribution to
Indian GDP
• Contribution in Indian GDP – The Indian
 Information Technology industry accounts
for a 5.9% of the country's GDP


ti
r ma
fo
In Tec
h 5.9%
on

S o u rce :
N a ssco m
FDI Flow in IT Sector
From April 2000 to January 2009
SECTOR AMOUNT OF FDI INFLOWS
In ` Million In US$ Million PERCENT OF
Services Sector ` 787420.81 $ 18118.40 TOTAL FDI
22.39
Computer Software & ` 391109.74 $ 8876.43 INFLOWS (In
11.12
hardware terms of Rs)

• 100% FDI is permitted through automatic route.

Source : www.fdi.com
Major Takeover
• Satyam's new board of directors, which met to
select the highest bidder, chose Tech Mahindra
following its bid of ` 1,757 crore for 31
per cent stake in the scam-tainted IT giant.
• Tech Mahindra offered ` 58 for each Satyam
share.
•
TAKE
OVER
Major Industry Players

Source : infoindialine.com
Infosys

Source : www.infosys.com
Finacle – Product of
• A universal banking
solution to large and
medium size banks
across India and
overseas.
•
• Infosys BPO, the
company provides
finance and
accounting, and
administration and
sales order processing.
PAT & EBITA of

` cr
Revenue Margins of
• Q1 revenues at US$ 1,358 million
• Growth of 4.8% QoQ and 21% YoY
• 38 clients added in the quarter
• 97% from the existing clients

In ` cr
TATA Consultancy
Services
• India's IT Services industry was
born in Mumbai in 1967 with
the establishment of Tata
Group in partnership with
Burroughs. 
•
• The first software export zone 
SEEPZ was set up here way
back in 1973, the old avatar of
the modern day IT park.
•


Source : wikipedia & www.tcs.com

PAT Margins of

In ` cr

In ` cr
 Revenue Margins of
al Highlights for Quarter Ended June 30 , 2010 :
Operating Profits at $487 million; Growth 32.5% Y-o-Y and 5.1% Q-o-Q
Profit After Tax at $403 million; Growth of 29.3% Y-o-Y and (4.9) % Q-o-Q
Earnings Per Share at $0.21

In ` cr

Source :http://www.tcs.com/news_events/press_releases/Pages/
Wipro
• 1945 - Western India
Vegetables
Products Limited.
• 1970 – Infotech Area
• 1977 – Wipro
• 1981 – Launched the
1st mini computer
• 2000 – Listed in
NYSE – Mcap - USD
$ 24 billion
PAT Margins of

In ` cr

in ` cr
 Revenue Margins of
quarter ended March 31, 2010,
IT Products business recorded revenues of ` 8.90 billion,
representing a growth of 2% YoY.
EBIT for this segment was ` 262 million.
Operating Income to revenue for the quarter was 2.9%.

In ` cr

http://www.wipro.in/Company/
 Comparison of the Major
Player
Company
TCS Market Cap
169,444.59P/E
28.72 P/BV
11.28 EV/EBIDT
21.82 ROE
39.5 ROC
44.6
InfosysTech(1`64,367.83
in Cr.)(TTM)
28.73 (TTM)
7.46 A
16.84 (%)
29.1 E
37.8
(x) (x) (x) (%)
Wipro 106,269.51 22.09 6.01 16.25 32.4 28.5

Source : infoindialine.com
Som Mittal – Nasscom
Chief
• The information
technology (IT) sector
In India is to grow by
4%-7% this fiscal and
is expected to attain a
double-digit growth in
the next fiscal starting
from April 2010.
Latest News….
• TCS (Mr.Ratan Tata) & Infosys
(Mr.Narayana Murthy) looking for the
successors….
 Thank you !
From Sompal & Deepa
